Expedia, Once Dog, Now Top Pick After "Surprising" Q1

Having scored on Priceline (PCLN) in Q1, Citi's Mark Mahaney has switched his bet to the beaten down Expedia (EXPE)--and maintains this after a "surprisingly healthy" Q1. He does cut his price target, however.

Expedia Reported A Surprisingly Healthy March Quarter - $688MM in revenue & $0.24 Adjusted EPS vs. Street estimates of $658MM, & $0.23, respectively. OIBA of $126MM was up 21% Y/Y. Revenue upside came from the Domestic segment ($21MM or 5% upside) and the European segment ($8MM or 5%).